Market Update Week Ending 15 January 2020

US and European equity markets fell last week in what was described as a relatively quiet week.  The main news was President-elect Joe Biden’s announcement of a $1.9 trillion coronavirus relief package which was largely already priced in to the markets and so traders seemed content to book profit from recent gains.

Weekly performance up to 15 January 2021
FTSE 100 (UK) -2.0%
Dow 30 (US) -0.9%
Euro Stoxx 50 (Europe) -1.2%
Nikkei 225 (Japan) +0.4%

In terms of £ Sterling, it closed the week (to 15 January), at 1.36 US Dollars, which was 0.2% higher than the figure at the end of the previous week (8 January).

Against the Euro, £ Sterling closed on 15 January at 1.12 Euros, which was 1.3% higher than the closing figure on 1 January.

Inflation, as measured by the Consumer Prices Index including owner occupiers’ housing costs (CPIH) was 0.6% in November 2020 (this is November’s data which is reported in December).  This was down from 0.9% in the previous month with falling prices for clothing, and food and non-alcoholic beverages resulted in the largest downward contributions.  The 12-month rate for the Consumer Prices Index (CPI) rate which excludes owner occupied housing costs and council tax was 0.3% in November, down from 0.7% in October.

There were no further changes to the Bank of England base rate last week following the two previous cuts in March.  The current rate remains at 0.1%.

The Omnis Managed funds, Openwork Graphene Model Portfolios and Omnis Managed Portfolio Service provide you with a diversified asset allocation in line with your Attitude to Risk, investing in Developed Market Equities, such as UK, US, Europe and Asia Pacific as well as Emerging Market equities.  Cautious and Balanced investors will also have significant holdings in UK and Global Bonds, as well as Alternative Strategies.

We believe this multi-asset approach aims to minimise global equity market falls in volatile periods.  Past performance is not a guide to future performance.  The value of an investment and any income from it can fall as well as rise as a result of market and currency fluctuations.  You may not get back the amount you originally invested.


This Investment Outlook covers five themes for 2021:

  1. Recovery
  2. Moderate Reflation
  3. Globalisation
  4. Tech Regulation
  5. Build Back Better

The coronavirus pandemic made conditions particularly challenging for investors throughout 2020. After a sharp dip at the start of the health crisis, stock markets recovered relatively quickly, and some ended the year at record highs. Although many countries are starting 2021 with strict lockdowns as they fight against third waves of the virus and new mutations, investors are optimistic that mass vaccination programmes will allow economies to open more fully as the restrictions on travelling and socialising are lifted.

Read more here >>


Despite a strong start to the year, the UK stock market eroded some of those gains last week in light of negative economic news. Meanwhile, the world keeps a watchful eye on global vaccination programmes amidst rising Covid19 cases.

5 themes for 2021
The recovery from Covid-19, reflation, globalization, regulation of the tech industry and how we ‘build back better’. The 2021 Investment Outlook examines at these themes in detail.

UK equities slip last week
The UK economy shrank for the first time in six months in November as the UK entered its second lockdown. Amidst increased concerns of the economic fallout of Covid-19, UK shares fell last week after a strong start to 2021.

Covid-19 cases continue to surge
Global cases are forcing governments to enforce stricter lockdown measures putting pressure on economies and stock markets. China reported its highest number of new Covid-19 cases in more than 10 months.

Weak figures from the US
Unemployment, retail sales and consumer sentiment figures all disappointed last week and the S&P 500, DJIA and NASDAQ were all down as a result. President-elect Joe Biden announced a $1.9trn coronavirus stimulus package.

The Week Ahead
• UK releases data on consumer confidence, retail sales and public sector borrowing
• EU leaders meet to discuss vaccine rollout coordination. ECB rate decision
• Joe Biden sworn in as the 46th president of the United States of America

Listen to the Podcast here >>

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